The primary frog-themed memecoin on the Ethereum [ETH] blockchain in terms of market capitalization, Pepe [PEPE], appears to be mimicking the price trend of Dogecoin [DOGE] in 2021.
When examining the three-day timeframe, DOGE reached its peak subsequent to Bitcoin’s [BTC] halving phase, coinciding with a surge in the altcoin market cap, accompanied by the alignment of OTHERS.D.
PEPE has exhibited a similar trend in its recent behaviors. The coin has displayed comparable momentum, rallying significantly in tandem with Bitcoin’s price fluctuations and the broader dynamics of the altcoin market.
With DOGE hitting a major peak in January 2021, shortly after Bitcoin had surged to unprecedented levels, the fractal pattern observed in PEPE indicates the potential for reaching new highs.
Analysing DOGE’s movement in 2021, it experienced a surge from previous peaks to substantially higher levels as Bitcoin and the altcoin sector expanded.
The current price action of PEPE closely mirrors this phase, suggesting that it might not only attain but potentially surpass its previous highs in the upcoming periods, given the prevailing market conditions and investor sentiment.
Pepe Forecast Following a New All-Time High
Delving into PEPE’s price trends on the daily chart revealed an upward trajectory as it broke out of a descending wedge pattern, recently soaring to new peaks.
This breakout was characterized by a surge in trading volume, indicating robust interest from buyers.
However, after reaching these highs, the trading volume started to diminish, pointing towards a decrease in buying pressure.
PEPE is currently undergoing a pullback phase, hovering above a crucial support level at $0.0000167 that must be upheld for further upward movement.
Retracements frequently precede additional upward movements, particularly in volatile markets like memecoins. If PEPE holds above this support range, it is likely to resume its climb, possibly revisiting higher levels.
The overall market sentiment towards memecoins remains optimistic, implying that any downturns may be brief as the cycle of volatility persists.
Global Profitability and Account Distribution
Moreover, PEPE has garnered bullish sentiment among holders, as an impressive 90.75% of all addresses are currently “in the money,” indicating that the majority purchased their tokens at prices lower than the current market value of $0.000020.
Only a minor portion, 1.22% of addresses, finds themselves “out of the money,” signaling potential losses based on prevailing prices, while 8.02% are “at the money,” trading around the breakeven point.
This substantial majority of profitable addresses could propel a sustained upward trajectory for PEPE, as most investors are motivated to retain their holdings, possibly anticipating higher peaks before cashing out profits.
This strong foundation of holders lays the groundwork for future price appreciation.
Once again, the global ratio of Longs to Shorts accounts indicates optimistic sentiment, with long positions dominating at 73.4% compared to 26.6% for short positions.
This robust dominance of long positions, with a ratio of 2.76 to 1, strongly points towards a persistent upward trend, hinting that Pepe could uphold its rally, steered by the prevailing bullish market sentiment.